Salesforce Inc (CRM, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial position. With a current share price of $255.71, Salesforce Inc has experienced a slight daily decrease of 0.54%, set against a three-month decline of -14.84%. A detailed examination, anchored by the GF Score, indicates that Salesforce Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Salesforce Inc boasts a GF Score of 94, indicating a top-tier potential for market outperformance.
- Financial strength rank: 7/10
- Profitability rank: 8/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Understanding Salesforce Inc's Business
Salesforce Inc, with a market cap of $247.78 billion and annual sales of $35.74 billion, is a leader in enterprise cloud computing solutions. The company's flagship Customer 360 platform integrates customer data across systems, apps, and devices, enhancing sales, service, marketing, and commerce operations. Salesforce also offers a range of other solutions including Service Cloud, Marketing Cloud, Commerce Cloud, and MuleSoft for data integration, all contributing to an operating margin of 18.45%.
Financial Strength and Profitability
Salesforce Inc's financial resilience is reflected in its Financial Strength rating of 7/10. The company's strategic debt management is evidenced by a Debt-to-Revenue ratio of 0.35, underscoring its robust financial health. Additionally, Salesforce's Operating Margin has impressively increased from 2.71% in 2020 to an estimated 17.21% in 2024, demonstrating growing efficiency in revenue conversion into profit. The company's Gross Margin also reflects a consistent upward trend, further affirming its profitability.
Growth Trajectory
Ranked highly for growth, Salesforce Inc shows a strong commitment to business expansion. The company's 3-Year Revenue Growth Rate of 15.7% outperforms 65.45% of its peers in the software industry. This is complemented by a significant increase in EBITDA over the past few years, with a three-year growth rate of 41.8% and a five-year rate of 33.7%, highlighting its capability to sustain growth.
Conclusion
Considering Salesforce Inc's robust financial strength, impressive profitability, and sustained growth metrics, the GF Score distinctly highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
